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Pharoahindustries manufactures light factures for home, retail, and industrial customers. The retall line has been showing touses for several years, and management is considering dropping

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Pharoahindustries manufactures light factures for home, retail, and industrial customers. The retall line has been showing touses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year, Home Retail Industrial Total Sales $ 551700 $321700 $831700 51705100 Variable costs 359200 219200 682000 1260400 192500 102500 149700 444700 Contribution margin Fixed costs 126700 131700 116700 375100 Operating income $ 65800 $129200) $33000 $ 69600 of the fixed costs, $320100 of it is common costs that have been allocated equally to each product line. What will total operating income be if Pharoah drops the retail line? $ 98800 O $ 77500 $22100 O $47900)

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